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House Extends Nazi Art Recovery Act

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The House of Representatives passed legislation extending the Holocaust Expropriated Art Recovery Act, which helps heirs of Nazi art victims bypass statute of limitations. The bill, already approved by the Senate unanimously in December, eliminates time-related defenses museums had used to block claims. The legislation now heads to President Trump for his signature, potentially affecting institutions holding potentially disputed artworks.

Museums and European entities raised concerns the legislation goes too far in removing legal protections, with the Association of Art Museum Directors funding a lobbying effort to preserve certain defenses. The bill could disrupt the art market by affecting ownership claims for potentially valuable works, forcing institutions to reevaluate provenance documentation and potentially triggering claims worth millions.

The legislation reclassifies Nazi art seizures as violations of international law, stripping sovereign immunity protections for foreign entities. This could affect pending cases like the lawsuit by Fritz Grünbaum's heirs seeking 12 Egon Schiele works from Austrian museums, with Austria currently seeking dismissal based on sovereign immunity. German officials expressed concerns about overriding established restitution frameworks.